This article is written by Chinese businessmen
| First issued on WeChat public account: Chinese business strategy (hstl8888)
| Author: Xiong Jianhui
For the investors, if you miss the "Suning Appliance", it is a regret. From the listing of Suning in 2004, if you have been holding Suning in the top 100 Chinese chain stores in 2009, you will get a compound benefit of 26 times, far better than the stock of Warren Buffett. The founder of Suning, Zhang Jindong, also did three major events in 2016: bought the Inter Milan football team, making Suning's online sales exceed 50 billion, and plans to build 300 VR experience halls. How will the creator of the former Chinese business miracle lay out the future of Suning Hongda's industry?
â—†Small seesaw set sail
In 1963, Zhang Jindong was born in Tianchang, Anhui Province, and later moved to Nanjing with his family. He was dependent on his grandmother since childhood. In 1980, he was diligently admitted to the Chinese Department of Nanjing Normal University. After graduation, he gave up as a teacher and went to a local state-owned company in Nanjing to become a clerk.
At that time, Zhang Jindong held a monthly salary of 55.8 and quickly lost interest in his work. He was scared from childhood, and once he saw that there was no "money" in this job, he followed his brother Zhang Guiping to run a part-time job. He installed computers, air conditioners, and purchased computers, and quickly earned 100,000 pieces. Most importantly, he found that the air conditioners sold in big shopping malls are only semi-finished products, and installation is a big problem. This made him see that air conditioners and services can be "products" and have business opportunities.
In the late 1980s, some enterprises and colleges and universities have used the "luxury" of air conditioning. Although the most popular refrigerators, color TVs, washing machines, household air-conditioning consumer market has not yet started, but Zhang Jindong dare to burn "cold stove", contact Chunlan air-conditioning became an agent dealer. This choice is full of risks, but Zhang Jindong believes that as long as you have 60% confidence in doing things, you must work hard.
In 1990, Zhang Jindong resigned. He looked at the 200-square-meter facade of the old club and wondered if he wanted to rent the shares, but he was refused and had to pay 70,000 yuan in annual rent. The store decoration was not smooth, and it was only opened from September to December 26, which made Zhang Jindong extremely angry. Unexpectedly, he sold an air conditioner in the cold weather, and Zhang Jindong determined that this small shop called “Suning Jiaojiao Appliance Company†would burst fire.
Everything is difficult at the beginning. After the rent and decoration are paid, Zhang Jindong has few money left. But the big things can't help him. There are several prototypes in the store. He lets customers pay for the goods first, and the company delivers them to the door for free installation. People didn't feel that there was anything wrong with this, and the free installation poked the market pain point. Zhang Jindong took the customer's money to move the goods, and each air conditioner earned a net profit of 1,000. He soon discovered that in Nanjing, the "furnace city" sells air conditioners comparable to gold mines. One year later, at the age of 29, he has become a multi-millionaire.
The funds are not a problem very quickly, and the shortage of supplies is coming again. At that time, state-owned shopping malls dominated the world, they usually order in April, and the off-season. Manufacturers also had to work overtime in spring and summer, idle capacity in autumn and winter, and the result was out of stock in the peak season. Manufacturers want to produce off-season, but the state-owned shopping malls are not doing it. They don’t use the funds and stocks. In the next year, they hit a “cool summer†and they are destined to lose their blood.
But Zhang Jindong believes that the troubles of others are their own opportunities. In order to get a stable supply, he decided to break this "death."
In the fall of 1992, Zhang Jindong signed more than 50 million anti-season orders with shaking hands at Chunlan, Huabao and other air conditioner manufacturers. The manufacturers promised to protect the supply and price concessions. In the past years, Nanjing has ushered in a great summer, but Suning promised to dump air-conditioners at the lowest price in the city, and suddenly smashed Suning's small store.
The eight state-owned shopping malls in Nanjing could not stand down. They had less supply and higher purchase prices. They issued a statement in the newspaper condemning Suning’s price war to disrupt the market and shame the company and the country. They joined forces to force manufacturers to attempt to cut off Suning's supply, while manufacturers firmly supported Suning. The eight major shopping malls did not have enough supply, and the price war did not cost, and eventually they lost. Zhang Jindong wrote a letter: As long as you are fully prepared, the opportunity will never be with you. At that time, Suning’s sales exceeded 300 million, and the “small seesaw†miraculously defeated the “joint fleetâ€.
In the following years, Zhang Jindong played the counter-season signing ceremony to the extreme, becoming an uncompromising "price butcher" and took the throne of China's largest air-conditioning dealer.
Looking around for four neighbors, Zhang Jindong has no rivals. But soon, a change came quietly.
â—†Large big chess game
The outbreak of Suning caught up with the vent of air conditioning demand, but in a few years, air-conditioning manufacturers and brands surged, and supply exceeded demand became oversupply. When the manufacturers found that the air conditioners were not selling well, they blamed the dealers and launched the "channel revolution." In 1997, Chun Lanhao threw 1 billion and built 3,000 chains; Midea and Haier also changed their faces, opened direct stores to test the water, and blocked the "big family" such as Suning.
Zhang Jindong suddenly discovered that the manufacturers who had been called brothers and sisters in the past few years turned into opponents. How will Suning go in the future? What should I do with the sales network? He couldn't help but fall into a choice.
Zhang Jindong always feels that if you want to create wealth, you must act quickly, not afraid of failure, and fall down again. However, if you simply seek stability and fear, you will find it difficult to succeed. Although the situation has changed a lot, he quickly decided to switch from wholesale to retail, from air-conditioning monopoly to integrated home appliances, taking a new path of chain development. Zhang Jindong also said that he would open a chain store in 3 days and prepare to open 1,500.
These references quickly sparked huge controversy. At that time, the agent wholesale could sell billions of dollars a year. Although the profit was low, but ran to do unfamiliar chain retail, can it work? Zhang Jindong did not know much about the chain, but his peers laughed at Suning’s bragging. In the face of doubts, Zhang Jindong’s approach is not to argue or to work hard.
At the end of 1999, Suning opened the first chain flagship store in Nanjing Xinjiekou. The new experience of one-stop shopping quickly led the new trend of consumption. People flocked to buy color TVs, bought air conditioners, bought air conditioners, bought refrigerators, and some simply bought all the home appliances they wanted to use. Zhang Jindong saw this business model reliable, and then began to open in the country. The journey of the soil.
"The scale is overwhelming, and the speed determines the fate." Zhang Jindong opened the store and wanted more and faster. In 2000, he took Nanjing as the center and first connected the whole of Jiangsu and Zhejiang. In 2002, he won Beijing, Shanghai, Tianjin and other municipalities. By the end of 2007, more than 600 cities in the country had more than 600 Suning stores. Soared to 100 billion. The opening speed of the store opened from 40 days in 2001 and became one in less than two days in 2006. This year, Zhang Jindong went to CCTV to receive the “China Economic Person of the Year†award. The host even said that “it takes less than one second to occupy a store hereâ€, which shows that Suning is developing rapidly.
Speed ​​up the store, where is the money coming? Outsiders seem to be a big problem, but they are easily cracked by Zhang Jindong: opening a new store requires only paying an annual rent of 2 million to 3 million yuan, and sometimes it can be paid in installments; the goods are provided by the manufacturer's entry fee. In this way, you can make money by opening a store, and you will soon be profitable. If you accumulate rental money, you can open a new store immediately. In this cycle, a nationwide home appliance chain sales network was thus woven by Zhang Jindong.
With rapid development and stable profitability, Suning has the irresistible charm of the capital market. In July 2004, Suning Appliance successfully listed on the Shenzhen Stock Exchange. Interestingly, other people listed only symbolically knocked on the clock, but Zhang Jindong knocked down. He is deliberate, he wants to let the entire capital market know - Suning is coming.
â—† "Mei Su" hegemony
As early as 1999, Zhang Jindong predicted : "Whoever masters the retail channel, whoever holds the throat of the market." This was too mad at the time, and it was too strong afterwards. Suning completed the layout in the era of "the terminal is king". , has a strong profit ace. Unfortunately, people who are more ambitious than Zhang Jindong see this as well. Among them are Dazhong, Yongle and Bestbuy, and the most powerful and terrible opponent is Huang Guangyu of Gome.
In 1987, Huang Guangyu took the lead in hanging the Gome sign in Beijing Zhushikou; in 2000, Suning opened its first store in Beijing. Huang Guangyu apparently regarded Suning as a latecomer. He is domineering. In 2004, he became the richest man in the "Hurun Rich List". Every time he mentioned Suning, he just thought that it was a poor follower of the Gome model, and he wanted to hit it quickly. Zhang Jindong is full of warmth. When talking about Gome, Gome has many advantages worth learning, and Suning cannot be slack. People believe that there must be a battle between the "US and the Soviet Union."
The business does not believe in tears. Huang Guangyu, who is proud of his heart, quickly let Zhang Jindong know what it feels like to be "under the city."
In July 2005, Gome Nanjing Xinjiekou opened, and Huang Guangyu came to the scene to help out. This is the last drop of Gome in the first-tier cities, and it is self-evident that it captures the “base†of Suning. It is not only 100 meters away from Suning's flagship store, but also known as "three years not profitable", in order to completely defeat Suning and then quickly.
However, Huang Guangyu's ambition is to fight everyone, Suning, Yongle, and Dazhong are all "prey." In terms of capital mergers and acquisitions, Huang Guangyu has become more aggressive in wildfire. In 2006, he took the lead in completing the acquisition of Yongle, which quickly opened the gap between Gome and Suning. Judging from the number of stores, sales revenue, and profitability, Gome is twice as popular as Suning and has an overwhelming advantage.
Of course, Zhang Jindong refused to sit still. In the 2007 Sino-Japanese merger and acquisition war, he took the lead in completing the negotiations with a purchase price of 3 billion. But what he didn't expect was that when Suning and Dazhong wanted to sign, Huang Guangyu took out a 3.65 billion cross-knife and won a big cut.
The merger and acquisition war made Zhang Jindong feel frustrated. It is inevitable to review his own too young and innocent in capital operation, and he can only rely on Suning itself to be more sophisticated.
At this time, Huang Guangyu has become a "martial alliance leader", claiming to "before the merger of Suning and Gome." Zhang Jindong broke out the strongest response: "We have never been afraid of anyone, not expressing, not publicizing, not equal to incompetence. If Suning does not have a Gome, there is no need to buy, I will give it to you."
The two companies do not give each other, and the competition in the stores is more intense. Most people think that Zhang Jindong’s encounter with Huang Guangyu is unfortunate in life, and the country’s advantage is great. Zhang Jindong may become a permanent follower. Suning’s acquisition is only a matter of time.
In fact, this is just the illusion of people. In the 2007 Hurun Retail Rich List, Zhang Jindong surpassed Huang Guangyu for the first time with 37 billion net worth, becoming the richest man on the retail list. Although Gome has more than 1,200 stores, more than 700 of Suning, but the output of single stores is 7.65 million yuan behind Suning. Suning’s net profit was 300 million more than that of Gome, which shows Zhang’s excellent operational ability.
After Huang Guangyu's merger and acquisition, he was proud of Jianghu, and Zhang Jindong was bored with his hard work. In 2006, Suning invested 80 million to build a new ERP system; in 2007, it built a Beijing logistics base; in the same year, it signed a 300 million yuan informatization big order with IBM to fully realize human resources, performance, finance, logistics, supply chain and customers. The integrated informationization of the service is accurate enough to manage each "capillary". Relatively speaking, Gome, which completes the merger, needs to integrate the information systems of Yongle and Dazhong, which is actually more laborious.
The logistics and information flow created by the heavy gold makes Suning faster and stronger. Suning connects the information system with upstream manufacturers to directly improve efficiency and reduce costs. At this point, Zhang Jindong is like a patient marathon runner. He knows that eating "stimulants" is useless, and working hard and hard, and with time and patience, will definitely win.
The opportunity is coming soon. In November 2008, the news of the "Huang Guangyu case" spread throughout the country, and people thought that Suning had a good chance to defeat the country. However, Zhang Jindong is extremely silent. He has not published any comments that are not conducive to Gome and Huang Guangyu, nor has it been suppressed by joint suppliers. He held an emergency meeting and warned employees to be cautious and prudent. "You cannot build your own success on the basis of defaming others."
Zhang Jindong’s elegant actions have won people’s praise and are surprising. Another argument is that Zhang Jindong has no interest in suppressing Gome. The suppliers of "US-Su" are highly coincident. The collapse of Gome will inevitably cause suppliers to show large areas of bad debts, which in turn will tighten the account period for Suning. Zhang Jindong's approach is full of wisdom, which not only protects the home appliance chain industry from shocks, but also wins the prestigious reputation of the elegant and honest.
Zhang Jindong became the ultimate winner of this brutal competition. Suning’s stock rose 30% in the month, but he did not seem happy: “It seems that others have fallen, we only run first. I feel that the development of the enterprise cannot be taken seriously, and ultimately it depends on itself. â€
â—†Management wisdom
If you can hold Suning Appliance stock from 2004 to 2009, the profits will be astonishing 26 times, far better than the stock of Warren Buffett. Zhang Jindong, who created such a company, obviously has extraordinary management wisdom.
Operating a business, the first heavy use of people. Zhang Jindong uses people, the most important concept. He pays attention to the "business manager" who loves the company, does not like professional but indifferent professional managers, and asks to do business with the same breath. He requires employees to have good character, heavy team, dedication, and moderate ability. Because of the ability and moderation of the people, the bitterness and tiredness will not abandon or give up; too smart people, Zhang Jindong is "not needed."
This concept makes Suning an eclectic person. They hold college students and laid-off workers to recruit in the country. After they join the company, they don't hesitate to spend a lot of money on training. Zhang Jindong believes that talent is more important than capital, training is financial, and business is investment. For a long time, there must be a thick report.
For employees, Zhang Jindong knows how to be emotional and full of humanity. At the beginning of the business, when he went abroad, he would move back a few boxes of foreign tight goods to employees, and talk about his wishes. On holidays and employees, he would not forget the gift red envelopes, even the "June 1" was not missed; The township ticket is a problem. He arranges a full-time department to help solve the problem. The old staff and the backbone have been seriously ill. He also invites experts from Beijing and Shanghai to come to the clinic. He even asks the children of the children to go to school... This is difficult in the general private enterprises. Imagine, but what Zhang Jindong wants is this family atmosphere.
In addition to moving with emotion, Zhang Jindong is still a fine person. According to regulations, Suning pays wages on the 15th of each month. Zhang Jindong found that sometimes the financial period is delayed by one or two days because of the 15th holiday. Everyone doesn't care, but Zhang Jindong criticizes finance: Why can't I pay wages two days in advance? This kind of small matter is for the employees to consider carefully, and some people have decided that Zhang Jindong is a good boss worth following.
For the management, Zhang Jindong is deeply convinced that "there is a common problem, the same wealth." Before Suning went public, his shareholding was diluted to 48%, most of which was used to reward the company's management and the veteran. After the listing, his shareholding was further diluted. In 2007, he made a “creation plan†and took out a large stake. Create hundreds of multi-millionaires. In Zhang Jindong's view, entrepreneurs can't take advantage of the fact that they can only share difficulties and cannot be rich.
Zhang Jindong’s atmospheric pattern of career and wealth has infected a large number of Suning executives. Everyone only thinks that such a good enterprise will not do well, and there will be no face and no. Zhang Jindong has penetrated the essence of wealth, enterprise development depends on the team, and value sharing relies on motivation. He divided the equity into so many, but in 2006 he became the first person in the A stock market. No one knows better than him how to divide the wealth more and more.
It is no accident that such a boss becomes a workaholic. Since Zhang Dongdong started his business, he has been through the whole year, and it is common practice to go to the early hours of the morning. The executives and employees were also dragged into the endless battle. The taxi drivers knew that the Nanjing Suning headquarters could survive in the middle of the night. Zhang Jindong understands that the market and opponents are waiting for people. He must urge 180,000 Suning people to run fast, so as not to be killed by the most cruel opponents. Even though Zhang Jindong is not afraid of any opponent, he has been winning, but this cannot be the reason for his rest. He has also regarded work as fun.
Zhang Jindong's requirements for detail and execution are extremely high, which makes Suning's level strict, quite military-style combat and bureaucratic management structure. Senior officials demanded uniform wearing black suits, and the canteen was divided into three levels: executives, managers, and employees. This makes Zhang Jindong have absolute power while being warm and tender. A widely spread piece is that as long as Zhang Jindong appears in the company's elevator, everyone inside will run out to the boss.
This kind of discipline and rigor, so that the standardization of Suning chain's rapid replication failed to become a management disaster, the super-powerful operation of 52 stores in the country one day is not a name. However, Zhang Jindong knows that the bureaucracy will make him trap the top of the company's power, and how to deal with the new era of more complex changes will be filled with unknown variables.
This does not seem to be a problem. But soon, the new challenges of the times came again, and it demanded that Suning re-emerge in the Internet era.
â—†é–战京东
On August 30, 2012, Jingdong Chairman Liu Qiangdong suddenly spoke on Weibo, claiming to accept Zhang Jindong’s challenge. It turned out that Zhang Jindong had released a swearword: If Jingdong’s growth rate exceeds Suning’s purchase, “I will give Suning to himâ€. Liu Qiangdong has set up a "gambling contract" on Weibo: he will take out 100 million shares in Suning's stock and give it to netizens who forward Weibo! Netizens naturally see that the excitement is not too big, and Suning and Jingdong collide together.
After defeating the country, Zhang Jindong could not find an opponent with a telescope. However, the e-commerce represented by Taobao and Jingdong suddenly rose, and ruthlessly eroded the home appliance chain market, which made Zhang Jindong suddenly shocked. He is keenly aware that with the popularity of computer networks and smart phones, the e-commerce era is fully coming, and in 2009, Suning Tesco will be decisively launched.
In 2011, JD's sales exceeded 30 billion, which made Zhang Jindong greatly stimulated. Although it only accounts for 30% of Suning's sales, Jingdong's annual growth rate of more than 100% indicates that Jingdong will surpass Suning two years later. Suning Tesco's sales of 5.9 billion in 2011 are still tepid. An unprecedented sense of crisis rushed into the heart of Zhang Jindong: this is a more terrible enemy than the country.
Zhang Jindong realized that Suning and Jingdong must have a battle. So he quietly went to the United States to learn, to Wal-Mart, Amazon, Best Buy and other industry giants and IBM, Google, Facebook and other IT leaders full go again, come back and inviting Huawei, Tencent and other technology giants support and concentrate on doing one thing: to Suning Tesco is the most technically prepared.
Zhang Jindong believes that to do business is to "make constant change", change the cutting-edge technology, and the constant is the commercial essence. The biggest change in the Internet is to improve circulation efficiency, so he quietly planned 12 giant logistics centers across the country, to make Suning a super fit of "Amazon + Wal-Mart" .
With such a grand layout, Zhang Jindong will not hesitate to burn money in a ruined manner to win this battle for the future. In July 2012, Suning announced the implementation of the largest 4.7 billion issuance plan in history, which led to a bleak market reaction. Only Hony Capital subscribed for 1.2 billion. Many institutions that have made great profits in Suning's stocks are not only interested in the issuance of the stocks, but also staged the drama of “Fleeing Suningâ€. They believe that the business model of Suning's home appliance chain has come to an end, and the risk of transforming e-commerce is huge, and it is not intended to "send the charcoal in the snow." So Zhang Jindong subscribed for 3.5 billion yuan from his pocket, but because of the institutional price, Suning's share price fell from 12 to 6, and the market value was shackled.
The more so, the more you can see Zhang Jindong’s determination to gamble on e-commerce. Business veterans have launched a strategic transformation and never played with uncertainty. Those who are familiar with Zhang Jindong feel that all this is exactly like Suning’s preparation for transcending the country. Soon, he directly shouted the slogan that spread widely: there is Suning Tesco in places where Suning is.
People soon saw a huge change in Suning Tesco: the category was fully expanded, merchants were heavily settled, and logistics data flow improved. The competitors unrelentingly launched a “stress test†on Suning : they first placed an order on the Suning Tesco website, and then canceled 400 customer service calls; then they called 400 customer service to request recovery, and asked to go to the designated store to pick up the goods; Finally, I went to the store to cancel the order again... So toss, Suning’s system can handle it freely, which shows that the system’s robustness is not a day’s work.
In August 2012, when Hua Shao was "thanks to Suning Tesco" in "China Good Voice", Liu Qiangdong began to publicly call on Weibo: starting from 9:00 am on the 15th, all the majors in Jingdong It is cheaper than Suning online and offline! The "Suidong War" suddenly broke out like this.
Faced with the challenge, Zhang Jindong did not personally speak. Li Bin, vice president of Suning Tesco, responded strongly: the price of all products of Eslite is inevitably lower than that of Jingdong. Otherwise, consumers will be given twice the price difference, and Suning will help Liu Qiangdong to complete the reduction in advance. Effective goal.
Under the noise, the traffic of the two home appliance merchants began to surge, which led to the network smashing. Many of the home appliances immediately hanged the "out of stock" mark. Suning made an offline linkage and shouted "the price with Jingdong", which unexpectedly drove sales. Suning Tesco was famous in this battle, with the highest single-day sales exceeding 300 million. Even Suning’s stock was turned over and was once pulled to the daily limit.
On the surface, the "Suidong War" seems to be provoked by Jingdong. In fact, Suning began to stock up as early as April, and carefully analyzed the cost and scale of the opponent, and everything was prepared. In September, Suning accidentally launched a "counterattack" and once again launched a 3C product promotion. However, the National Development and Reform Commission quickly intervened in the investigation, arguing that the activity was suspected of price fraud, and participation in e-commerce was approved. So both sides claimed victory and succumbed to the matter.
After a big war, let Zhang Jindong conclude that enterprises still have to work hard and be honest, but not rely on "microblogging wars." This price war is nothing more than some capital is attacked by the opponents. Suning insists on playing a protracted war, and the other party cannot afford it. Although the "Walmart + Amazon" model has never been seen before, Suning is going to be the benchmark.
In Zhang Jindong's eyes, Jingdong and Suning were not in the order of magnitude at the time. Suning's biggest opponent was Ali, and Jingdong was just a "little child."
Sometimes, it may not be an opponent that hinders success, just a big trend that is hard to resist! Unfortunately, the trend is not on Suning. In 2012, China’s economic growth slowed down, causing Suning’s “profit-making speed†to come to an abrupt end, and the net profit rarely fell sharply. In the third quarter of 2013, the first quarterly loss report was also harvested. For a time, the voice of Su Ning’s “transformation failure†and “no death will not die†is endless, as if Suning has gone bankrupt.
In this regard, Zhang Jindong is still calm, "economic growth will fluctuate, but now experience the trough. As long as this has passed, the new growth cycle will come."
â—† "Stupid" Suning
Zhang Jindong knows that the economic downturn is terrible, but good companies have always dared to rise against the trend. He did not catch the big enthusiasm of the transformation of e-commerce, but the success of the past line is inevitably an obstacle in the line, so that Suning is caught in the "left and right fight" dilemma. In addition, the loss under the line is very certain, and the profit on the line is uncertain. The end of Suning’s pain is nowhere, and no one can see clearly.
Zhang Jindong insists on the future view, that is, the development of online and offline, complementary retail formats. To this end, he did not hesitate to rename the company "Suning Cloud Business", intending to go to the end in the O2O model. In theory, the Suning O2O model is promising. Some people envisage that Suning's physical store can be transformed into a community service center, which can sell electrical appliances, help with payment, express delivery, and improve user stickiness.
However, it is widely believed that Suning lacks the "Internet gene." For example, Liu Qiangdong often stirs up topics and traffic on Weibo, but the identity of Zhang Jindong’s CPPCC National Committee and Vice President of the National Federation of Industry and Commerce cannot do this. Suning has few explosions and topics, and even self-built logistics has achieved "half-day" and "quick speed", but the propaganda is not in place, far from Jingdong's deep roots. Zhang Jindong also admitted that Suning would be "stupid" compared to Internet companies, and they would like to be "stupid", but he believes that many consumers will still like the "stupid Suning".
Because of "stupid", the cost of Suning is difficult to come down. Zhang Jindong always believes that the cost of e-commerce is not low. A good supply chain, back office, and logistics all need large investment books. It is harder to make profits by not selling fake goods and paying taxes honestly. Suning Tesco has taken offline standard operation from the beginning. Genes, the results of honest children always suffer. The state has a process in the field of e-commerce, so Zhang Jindong, a member of the CPPCC, has repeatedly submitted proposals, such as electronic invoices, information security, strengthening e-commerce taxation, cracking down on counterfeiting, promoting green logistics, etc., but the result has been criticized. . Is this practice a commercial war? Obviously it is also counted. However, illegal e-commerce can make profits, and law-abiding e-commerce has a loss. This is actually unreasonable and is not good for society and consumers. Law-abiding is the foundation of fair competition, and the e-commerce sector actually needs more “sunshine proposalsâ€.
Perseverance and pragmatism Zhang Jindong is not keen on speculative culture. He only believes in labor and accumulates the value of creation. Although the transformation of Suning was difficult, it regained its growth in 2014 and 2015, and it gained a net profit of 800 million. The online and offline orders have increased substantially. This is even more valuable for Suning, who does not pursue hot spots, does not make concepts, and exercises hard work. Zhang Jindong summarized his experience as: "See the trend clearly, be able to withstand criticism, find a path."
Jingdong and Suning still have a war of words, and Liu Qiangdong even revisited the "gambling bureau." He Weibo claimed that the growth rate of Jingdong in 2012 was 120%. When Jingdong went public, it was found that it was 96%, which was much lower than the growth rate of Suning Tesco in 2001. Naturally, Liu Qiangdong will not honor the promise of “sharesâ€.
However, Ma Yun has taken a fancy to Suning’s grand value. On August 10, 2015, on the occasion of Liu Qiangdong's new marriage, Ali and Suning announced a comprehensive strategic cooperation and became the second largest shareholder of Suning. When the news came out, it shocked the industry. Obviously, Ali knows how to create topics and speculation.
Zhang Jindong claimed that he and Ma Yun had only seen two sides, and they decided to cooperate on the basis of "the heart is in the same spirit. Ma Yun said that traditional industries and Internet companies are living hard, it is better to combine them, online and offline. The two are not talking about the wind, but more about how to become a wind generator. Ali's big data, combined with Suning's big logistics and numerous stores, clearly puts pressure on Jingdong, and Suning's huge future growth space will also open.
However, this is far from Zhang Jindong's card. Few people know that Suning is comparable to Wanda’s real estate giant in commercial real estate, and land reserves are far from what Internet companies can imagine.
As early as 2012, it was reported that Suning had a land reserve of 30 million square meters in the country, slightly less than Wanda's 39 million square meters. The commercial real estate that has been built is located in first- and second-tier cities across the country. Zhang Jindong ran on two legs, both as a commercial real estate and a strong breakthrough in e-commerce. People rarely hear him talk about Suning's real estate business, but he does not rumor that future commercial real estate may become another main business of Suning.
In fact, Suning Real Estate has become an invisible giant of commercial real estate. Now it has successfully developed a 20 million square meter project to create an urban complex including Suning Plaza and Suning Appliance Plaza, including shopping malls, flagship stores, office buildings, hotels and apartments. In this field, Wanda is the main opponent of Suning's benchmarking.
As for Suning's purchase of Jiangsu Haotian, Italy Inter Milan and other football teams to enter the sports industry, to build a VR platform, involving consumer finance, etc., but Zhang Jindong continues to be Suning's infinite future. Sometimes people simply don't understand what he is doing. His character is like this, acting like a giant, not moving, when you really take a big step, you will shake the mountains and rivers.
Author: Chinese Business Powerhouse | Chinese Entrepreneur Hall of Fame Xiong Jianhui
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